Common Business Insurance Terms EXPLAINED

Updated: 3 hours ago

BY Encharter

(Photo By Getty Images)

We all know that business insurance can get very confusing very quickly. So, to help you out, we’ve made this handy list of common business insurance terms and what they mean!

Common Business Insurance Terms:


Actual Cash Value

The current market price of the property or item


Additional Insured

People, other than the policyholder, who are covered under a policy


Assessed Value

The value of your commercial property – determined by a tax official


Business Interruption Insurance

A policy that helps cover any loss of funds due to a forced closing (that is covered by the policy)


Business Owners Policy (BOP)

A policy for businesses that includes general liability and property insurance. It is a bundle that often helps businesses save money.


Certificate of Liability Insurance

A piece of paper that summarizes the most important pieces of information of a policy


Commercial Auto Insurance

An insurance policy that helps protect company vehicles or vehicles used for work


Deductible

The amount your business will need to pay before the insurance policy covers the remaining balance.


Errors and Omissions Insurance

A policy that will help protect your business in case you face a claim due to negligence or mistakes.


Expiration Date

The date when the policy coverage is finished.


General Liability Insurance

This policy helps protect against lawsuits involving property damage or injuries that have been caused by a third party


Grace Period

The amount of time after a premium is due that the business can still pay without any penalty.


Indemnity

This the compensation you get for a loss.


Insurer or Insurance Company

The entity that sells insurance to your business. They do so by “underwriting”


Liability

The responsibility to pay, or perform some other action.


Liability Insurance

This policy helps protect your business against lawsuits regarding your responsibility.


Premium

The amount your business pays for coverage


Professional Liability Insurance

Simply another name for errors and omissions insurance


Property Insurance

An insurance policy that helps protect your commercial property if there is an accident or damage.


Quote

An estimate made by an insurance company of the cost of coverage and cost of a policy.


Replacement Value

The cost that it would cost to replace an item with a new equivalent.


Retroactive Date of Inception

The date when your errors and omissions coverage beings


Rider

This is an additional piece of coverage added onto a larger insurance policy. It may also be called an endorsement


Small Business Insurance

The insurance policy designed to help protect businesses against potential risks and accidents that may occur.


Workers Comp

This policy helps protect employees if they sustain injuries or illnesses on the job

If you ever have any questions regarding your small business insurance policy, then give us a call at Insurance Exchange! We can help you decipher any confusing terminology. We can also help answer any questions regarding a policy and what that policy may cover. After all, it can never hurt to ask!


_____________________________

Original article shared here:


Michigan Commercial Insurance, Northville, Ann Arbor, Canton, Detroit, Dearborn Heights, Garden City, Farmington, Farmington Hills, Inkster, Livonia, Novi, South Lyon, Southfield, Redford, Wayne, Westland, Wixom, Ypsilanti, Pittsfield, Scio Township, Michigan

The Huttenlocher Group

1007 W Huron St, Waterford , MI  48328

(248) 681-2100

670 Griswold Street #100 Northville, MI 48167

                     (248) 349-1122

  • Grey LinkedIn Icon
  • Grey Google Places Icon

CA License: 0G47886

We use cookies to personalize and enhance your experience on our site.  Visit our Privacy Policy to learn more. By using our site, you agree to our use of cookies, as well as our Privacy Policy and Terms of use.

We use cookies to personalize and enhance your experience on our site.  Visit our Privacy Policy to learn more. By using our site, you agree to our use of cookies, as well as our Privacy Policy and Terms of use.

We use cookies to personalize and enhance your experience on our site.  Visit our Privacy Policy to learn more. By using our site, you agree to our use of cookies, as well as our Privacy Policy and Terms of Use.

I'm a paragraph. Click here to add your own text and edit me. It's easy.

I'm a paragraph. Click here to add your own text and edit me. It's easy.